The Pakistani rupee continued to lose ground against the US dollar on Wednesday, losing another Rs2 in the interbank market amidst floods and renewed political instability.
In the open market, a gap of Rs10 with the interbank remained.
According to data released by the State Bank of Pakistan on Wednesday afternoon, the interbank market closed with a US dollar trading for as much as Rs223.42.
Following a close at Rs221.42 on Tuesday, Wednesday’s close showed a fall of Rs2 in the value of the rupee, or a depreciation of 0.90%.
Earlier during intraday trading on Wednesday, the rupee lost nearly two rupees in value, as it slid from Tuesday’s closing value of Rs221.42 to Rs223.40 on Wednesday.
Open market gap
Meanwhile, in the open market, the yawning gap with the interbank market continued to widen as a US dollar was traded for as high as Rs233, a difference of almost Rs10.
ECAP Chairman Malik Bostan has revealed that the open market has resorted to following the black market rates instead of the Interbank, as it was doing previously, where the price of a US dollar has risen to Rs235.
However, the payment rates of letters of credits are also fluctuating in interbank market.
Bostan added that the import of onions and tomatoes from Iran and Afghanistan has also led to the increase in demand for US dollars which was impacting the currency markets.